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(1) Crazy Batou seems to be a relic from preceding versions of Morrowind, I don't know. He isn't important anyhow, the less he is a game critical being. The disaster message is completely false.
You can kill him and get the helm whenever you want during the game, without spoiling or losing anything.
(2) The bosmer dude belongs to anoter helm (the best one in the game). Check daedric quests.
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My name is Demon\'s Last Day. Yes, the last one.
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